Louisville Joint Stock Land Bank v. Radford

In 1922 (and in 1924), Radford mortgaged to the Louisville Joint Stock Land Bank a farm in Christian County, Kentucky, comprising 170 acres, then presumably of the appraised value of at least $18,000. [ Footnote 3 ] The mortgages were given to secure loans aggregating $9,000, to be repaid in installments over the period of 34 years with interest at the rate of 6 percent. Radford's wife joined in the mortgages and the notes. In 1931 and subsequent years, the Radfords made default in their covenant to pay the taxes. In 1932 and 1933, they made default in their promise to pay the installments of interest and principal. In 1933, they made default also in their covenant to keep the buildings insured. The Bank urged the Radfords to endeavor to refinance the indebtedness pursuant to the provisions of the Emergency Farm Mortgage Act, May 12, 1933, c. 25, 48 Stat. 41. [ Footnote 4 ] After they declined to do so, the Bank, having declared the entire indebtedness immediately payable, commenced, in June, 1933, a suit in the circuit court for Christian county against the Radfords and their tenant to foreclose the mortgages, and, invoking a covenant in the mortgage expressly providing therefor, sought the appointment of a receiver to take possession and control of the premises and to collect the rents and profits.